Want to teach your child to save money and where to spend it wisely? Be sure to read this guide on financial literacy for kids.
As a parent, you know only too well how expensive kids can be. From funding their education to meeting their housing, food, and clothing needs, the expenses can take a toll on your finances.
But for how long will your children depend on you for their financial needs? You don’t have to wait until they reach the legal adult age to start teaching them about the art of making, saving, and spending money. As early as age 5 or 6, you should start giving them some financial lessons.
Continue reading to learn more about financial literacy for kids and how to impart it.
Develop the Skills You Want to Teach
You can’t teach your child how to save money or spend it wisely if you don’t practice it yourself, right? Well, some people can, but this isn’t the way to go.
If you want your kids to develop good money habits, you need to have good money habits too. If you’re a reckless spender who only saves sporadically, it’s important to develop good money habits before you can embark on teaching your children.
After all, your kids learn best from you. If you take them out shopping and you always don’t make a shopping list, they will certainly won’t know the value of creating and sticking to a shopping list. But if you’re always using a shopping list, they’ll know the list is a fundamental part of shopping.
Hold Financial Lessons at Home
When you want to teach your child how to ride a bike, you need to take them out on the yard and give them lessons. The same applies when you want to teach your kids financial skills.
If your kids are old enough to sit and concentrate, you can bring them together for short financial lessons. This is where you tell them about the theoretical aspects of financial management.
However, ensure that what you’re teaching them is age-appropriate. For example, if your kids are in high school, they’re old enough to learn about complex topics such as debt and debt management. On that note, here’s more information on how debt consolidation, an effective debt management strategy, can help your finances.
Piggy Banks Go a Long Way
As an adult, you certainly have at least one savings account. You can attest that it’s a good way to save money.
Why not open a savings account for your child too? Well, while it’s possible to open a bank savings account for a minor, it’s you who will be depositing money into the account. The best savings account for your child is a piggy bank!
With a piggy, it’s more practical to teach them how to save money. Simply put some money away into the bank. Tell your kid they can only withdraw it after a certain period of time or after a specific savings goal has been met.
Embrace Financial Literacy for Kids
If you’re anything like most parents, you’re probably often on the grind. You don’t have time to teach your kids about money. However, embracing financial literacy for kids is just as important as the effort you put into providing for them.
With this guide, you now know how to teach your kids how to save money.
Keep reading our blog for more money and parenting tips.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
Speak Your Mind